The City regulator’s report into Royal Bank of Scotland Group’s (LON:RBS) controversial restructuring unit has been leaked online, The Times reports. The latest twist in the saga over the lender’s Global Restructuring Group (GRG) comes amid pressure on the Financial Conduct Authority (FCA) to release the full report.
RBS’ share price has been little changed in today’s session and as of 08:50 GMT stood at 277.00p, flat in percentage terms. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.21 percent higher at 7,192.48 points. The group’s shares have added more than 18 percent to their value over the past year.
FCA report leaked
The Times reported this morning that the highly-sensitive 361-page report into RBS’ GRG division was sent initially to more than 500 members of a group who want to sue the bailed-out lender over the activities of the division which allegedly mistreated thousands of companies. The document, however, was soon available to download for anyone who had the link, which was being shared on social media.
The newspaper notes that the report outlines failings within GRG, including “systematic” poor treatment of small and medium-sized companies, suggesting that RBS’ management were to blame as they were “aware (or should have been aware) of these issues”. GRG was at the centre of allegations that RBS had forced small company clients out of business to acquire their assets on the cheap.
Watchdog considering legal options
The Times noted that the FCA was understood to be considering its legal options over the leak. The newspaper further quoted the bailed-out lender as saying that “although the regulator has confirmed that the most serious allegations have not been upheld, we know that the bank got a lot wrong”.